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What is Section 3?
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic development improvement, and individual self-sufficiency. This program requires the recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low or very low income residents in connection with projects and activities in their neighborhoods. The City of League City has upcoming construction projects that will be subject to Section 3 requirements.

Section 3 Business ConcernsWhat is a Section 3 Business Concern?
A Section 3 Business Concern is:

Owned by 51% or more by Section 3 Residents

Employ at least 30% of employees who qualify as Section 3 Residents (or within 3 years of the date of
first employment with the business were Section 3 Residents)

Commit to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to
business concerns that meet one of the first two qualifications above

The city will maintain a list of certified Section 3 Business Concerns and notify them about specific Section 3 bid opportunities. Section 3 Business Concerns interested in being included in this list are invited to complete and submit the Section 3 Business Concern Certification Form along with required documentation to the city's Section 3 Coordinator.
Section 3 Workers / Section 3 ResidentsWhat is a Section 3 Resident?
Section 3 Residents are either:

Public housing residents including persons with disabilities

Low income or very low income person(s) who live in the metropolitan statistical area or non-metro
county area of the project

HUD Youthbuild program participants

Homeless, defined under McKinney Act (42 U.S.C. 11301 et seq.)

Persons are considered low income if their household incomes do not exceed 80% of the median income for the area. Persons are considered very low income if their household incomes do not exceed 50% of the median income for the area. Refer to the Section 3 Resident Certification Form for income limits by household size for Harris and Galveston Counties.